Board adopts second interim budget showing managed deficit and 11.8% reserve

The Redondo Beach Unified School District Board of Education voted to adopt the 2024–25 second interim financial report after a presentation by Deputy Superintendent Annette Alurn.

Alurn told the board the report covers district transactions through Jan. 31 and includes multi‑year projections built on conservative assumptions — a 0.5% annual enrollment decline, a 95% daily attendance rate and built‑in cost‑of‑living adjustments. She said the district is deficit‑spending this year and next but projects returning to surplus in 2026–27.

“Our multi‑year projections show we are managing our deficit spending,” Alurn said, and highlighted obligations that affect future budgets, including rising employer contributions to CalSTRS and CalPERS. She noted the district’s reserve for economic uncertainties increased from 10.77% at the first interim to 11.8% at the second interim. Alurn cautioned the reserve could fall into the low 11% range if a tentative agreement with the certificated association is approved.

Board members asked about reserve policy and state comparisons. Alurn reiterated that state law requires a minimum 3% reserve; the district’s practice has been to maintain at least one month of operating expenses (about 8%), and she said some analysts prefer two months in difficult times.

The board acted on the recommendation and approved the second interim report by voice.

Next steps: the report will be reflected in required filings with the county office and will inform budget work leading to the June local budget adoption deadline.